5 Blue Chip Stocks to Buy That All Yield 4% or More

Occidental Petroleum

This top energy stock is one of the highest yielding domestic stocks in its sector. Occidental Petroleum Corp. (NYSE: OXY) is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. It is one of the largest U.S. oil and gas companies, based on equity market capitalization. Its midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. In addition, wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.

Its surprising third-quarter numbers this week beat analyst expectations, and Occidental also announced that it will be leaving the Bakken shale after posting very heavy losses there.

Occidental also announced recently a deal with Ecopetrol to invest up to $2 billion over the next decade to increase production at the La Cira-Infantas oil field in Colombia. According to Reuters, the new round of investments will increase production in the region by more than 200 million barrels.

Occidental shareholders receive an outstanding 4.06% dividend. The Merrill Lynch price target is $95, while the consensus target is $78.83. Shares closed Wednesday at $73.81.


This is a top utility stock to add to growth and income portfolios. PPL Corp. (NYSE: PPL) serves 321,000 natural gas and 397,000 electric customers in Louisville and 16 surrounding counties, as well as 543,000 customers in 77 Kentucky counties and five counties in Virginia. PPL also provides electric delivery services to approximately 1.4 million customers in Pennsylvania and operates electricity distribution network for the Midlands, South West and Wales in the United Kingdom.

PPL also offers a range of customer-care and back-office services to competitive retail energy suppliers, including customer enrollments, contract management, electronic data exchange, simple and complex billing, and call center operations comprising telemarketing, payment processing and collections of overdue accounts.

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One of the leading utility companies in the United States, PPL plans to continue to increase regulated operations and lower earnings volatility attached to competitive operations. It just reported solid earnings and should continue with a solid fourth quarter and 2016.

Investors receive a solid dividend that comes in at a generous 4.46%. The Merrill Lynch price target is $36, and the consensus target is $35.19. The stock closed Wednesday at $33.42.

Verizon Communications

This top telecommunications company to buy recently did away with some phone incentives, and it is also on the Merrill Lynch US1 list. Verizon Communications Inc. (NYSE: VZ) is a global leader in delivering the digital world. Verizon Wireless operates America’s most reliable wireless network, with 109.5 million retail connections nationwide. Verizon also provides converged communications, information and entertainment services over America’s most advanced fiber-optic network, and it delivers integrated business solutions to customers worldwide.

Wall Street has applauded Frontier’s acquisition of Verizon’s wire-line operations in California, Florida and Texas, which is expected to be completed at the end of March in 2016. Many feel that focusing on the higher margin segments at the company makes sense, and the sale to Frontier is a huge cash boost to the balance sheet.

Verizon investors are paid a massive 4.85% dividend. The Merrill Lynch price target is $55, and the consensus price objective is $50.41. Shares closed Wednesday at $46.48.

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Blue chip stocks that pay good dividends never go out of favor. Sure they may trade up and down in price, but with lasting sector leading businesses, and future growth potential, they make good sense for long-term equity investors.

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